The growing water crisis in India, key challenges and solutions

India, home to 18% of the world's population but possessing only 4% of its freshwater resources, is grappling with a significant water scarcity challenge. As the largest extractor of groundwater globally, India annually withdraws over 253 billion cubic meters. This excessive extraction has dramatically reduced per capita water availability, resulting in approximately 54% of assessment units experiencing water stress.

What Are Water Credits:

Water credits are a market-based mechanism akin to carbon credits, designed to promote water conservation and improve water quality. Individuals and organizations can earn tradable credits by adopting water-saving measures. These credits can be sold to those needing to offset their water usage or enhance their water management practices. Water credits aim to increase water use efficiency in agriculture, promote sustainable water management practices, and stimulate investments in water-saving technologies and infrastructure.

How Do Water Credits Work:

The water credit system incentivizes farmers to improve their water usage practices. By implementing measures to reduce water consumption and adopt more efficient techniques, farmers earn water credits. These credits can then be used to purchase equipment, improve agricultural techniques, and invest in other resources.

The Concept of Water Credits:

In 2023, the Government of India launched Mission LiFE (Lifestyle for Environment) to inspire a global movement for environmental conservation. Mission LiFE aims to transition towards a circular economy, influencing changes in demand, supply, and policy. Water credits align with this mission by providing a framework to recognize and reward water conservation efforts.

Read More.. The Impact of Global Deforestation on Agriculture and Food Supply

Functioning of Water Credits in Agriculture: Water credits account for the total water consumed during the production process of agricultural commodities, from crop cultivation to the final product. This includes both direct water usage (irrigation) and indirect water usage (water embedded in inputs such as fertilizers and pesticides). By understanding these water requirements, farmers and policymakers can work towards more efficient and sustainable agricultural practices.

India Faces a Major Water Crisis: A 2021 report by the Comptroller and Auditor General (CAG) has highlighted an alarming increase in the rate of groundwater depletion, posing a threat to nearly 80% of India's freshwater sources over the next two decades. Agriculture accounts for approximately 85% of India's freshwater usage, emphasizing the critical importance of effective water management practices in this sector.

Key Components of Water Credits: Water credits primarily involve rainwater stored in the soil, utilized by plants, and constitute the portion of virtual water received from natural rainfall. Unlike irrigated agriculture, which relies on external water sources, rainfed systems depend entirely on green water. Utilizing fresh rainfall for irrigation manages portions of water resources used in agriculture. The quantity of fresh rainfall needed to dilute pollutants (such as fertilizers and pesticides) generated from agricultural activities is crucial for maintaining water quality.

Innovations to Enhance Water Use Efficiency in Agriculture:

• This reduces water usage by up to 50% compared to traditional methods.
• This practice helps decrease reliance on groundwater and supports the replenishment of water tables.
• These technologies optimize the timing and amount of water application, thereby enhancing crop yields while minimizing water wastage.
• Growing crops adapted to local climates reduces water demands and aligns agricultural practices with regional water availability.
• This approach mitigates soil degradation, reduces overall water consumption, improves soil fertility, and lowers the risk of pests and diseases.
• These techniques raise groundwater levels, allowing surface water to seep into the ground and replenish aquifers.

Challenges and Solutions in Implementing the Water Credit System:

• It is crucial to consider the specific characteristics of the water catchment area, rainfall patterns, and current usage.
• Equal access to water credits should be ensured for small farmers and large enterprises to prevent market dominance by established entities.
• There is significant variation in water rights and regulations among states, highlighting the need for harmonization to establish a standardized water credit market.
• Robust verification processes, including third-party audits and digital tracking systems, are essential to verify the authenticity of reported water savings and prevent exaggeration.
• Extensive studies are necessary to develop foundational metrics for determining the economic value of water credits.

Water Credit for Improving Water Use Efficiency in Agriculture:

The aim of water credits is to encourage farmers to use water more efficiently and skilfully. This system provides credits to farmers in exchange for saving water and enhancing water efficiency. These credits can be used to achieve various benefits, offering farmers both financial and environmental advantages.

Benefits of Water Credits:

• Water Conservation: This system helps farmers achieve higher yields with less water usage, thereby conserving water resources.
• Financial Benefits: Receiving water credits provides economic incentives to farmers, aiding them in improving their agricultural practices.
• Environmental Conservation: The water credit system assists in managing water use efficiently, leading to positive impacts on the environment.

How to Improve Water Use Efficiency in Agriculture: Ensure efficient water distribution by utilizing drip irrigation and sprinkler systems. Balancing water requirements through crop rotation can be achieved. Employ mulching and other soil conservation techniques to preserve soil moisture.

Conclusion: The water credit system is an innovative approach that encourages farmers to improve water use efficiency. This not only conserves water resources but also offers financial benefits to farmers. By adopting water credits, we can progress towards a sustainable and efficient agricultural system.